What is true about the claims process in relation to deductibles?

The correct answer highlights an essential aspect of how insurance claims work concerning deductibles. In insurance policies, a deductible is the amount that the policyholder must pay out-of-pocket before the insurance coverage kicks in. This means that payments for covered claims are only made after the deductible amount has been satisfied.

For example, if a homeowner has a policy with a $1,000 deductible and files a claim for damages worth $5,000, the insurer will first deduct the $1,000 from the total claim amount. Thus, the insurance payout would be $4,000, and the policyholder would be responsible for paying the initial $1,000.

The other options do not accurately reflect how deductibles function within the claims process. Benefits are not paid immediately because the insurer must first determine the extent of the claim and whether the deductible has been met. Furthermore, deductibles apply to various types of coverage, not just limited to property damage. Therefore, the answer correctly encapsulates the fundamental principle that claims payments are contingent upon the deductible being met.